\u3000\u3 Guocheng Mining Co.Ltd(000688) 016 Shanghai Microport Endovascular Medtech (Group) Co.Ltd(688016) )
Matters:
The company released the first quarter report of 2022: Q1 achieved a revenue of 258 million yuan (+ 30.59%), a net profit of 123 million yuan (+ 21.44%), and a net profit of 118 million yuan (+ 19.66%) after deduction.
Ping An View:
Core products continued to be sold in large quantities, and Q1 achieved rapid growth
In the middle and last ten days of the epidemic, the company’s operating revenue continued to grow by 5.9-3 billion yuan, which had a certain negative effect on the company’s coq1-3.9 billion yuan in Shanghai. On the profit side, excluding the impact of amortization of equity incentives, the company’s attributable net profit is about 128 million yuan (+ 26.28%), and the attributable net profit after deduction is about 123 million yuan (+ 24.66%).
The three main products castor, Minos and drug balloon reewarmptx are the core growth drivers. After years of promotion, castor has covered a relatively large number of hospitals. We speculate that its growth is about 35%. Minos and reewarm PTX, which are in rapid volume, are estimated to have faster growth. The overall gross profit margin of Q1 is 77.82% (- 2.25pp), and the decrease of gross profit margin is mainly due to the change of product structure. In terms of expense rate, Q1 sales expense rate is 7.80% (- 1.30pp), management expense rate is 4.02% (+ 1.74pp), and R & D expense rate is 13.30% (+ 2.60pp).
Fontus, Talos and other new products have been approved for listing, and product iteration ensures long-term competitiveness
Innovation is the core competitiveness of the company’s development and growth. In the past few years, the company has successively launched innovative products such as Cronus, castor, Minos and reewarmptx, and has realized subversive or iterative innovation for many times, which has achieved the rapid growth of the company for many years.
Since 2021q4, the company has successively launched peripheral high-pressure balloon ryflumen, branched intraoperative stent fontus and new straight tube chest main stent Talos. We expect that these products will enter more hospitals in 2022, laying a foundation for subsequent sales.
In addition, the company’s R & D pipeline also has a wealth of products such as vein stents, filters and thrombus removal stents, which will be successively promoted to the market in the next few years to ensure its long-term competitiveness.
Maintain a “recommended” rating. Driven by innovation, the company promotes the old and brings forth the new products to ensure sustainable growth. In recent years, the company has made great efforts to explore overseas markets and opened the growth ceiling. The company has sufficient reserves of raw materials. At present, the production capacity and freight capacity have recovered to a certain extent. The demand for products related to elective surgery is expected to rebound after the epidemic subsides. Maintain the forecast of EPS of 5.95, 7.97 and 10.53 yuan from 2022 to 2024, and maintain the “recommended” rating.
Risk tips: 1) there is pressure to reduce the price of high-value consumables. If the decline exceeds expectations, it may affect the growth rate of the company; 2) Several important products of the company have just been listed or are about to be listed. If the clinical / listing / bidding results are less than expected, the subsequent growth momentum of the company may be weakened; 3) If the company’s newly launched products cannot be fully integrated into the platform to achieve rapid volume, it will have a negative impact on performance growth.
